Macklem: BoC cannot rely on global developments to bring down inflation

Bank of Canada Governor Tiff Macklem responded to questions from the press following the bank’s decision to raise the policy rate by 50 basis points to 3.75%.

The USD/CAD pair continues to trade in negative territory following the press conference and was last seen losing 0.35% on the day at 1.3560.

Key Quotes
“We do expect rates will have to go up further, we will determine the pace depending on developments.”

“We cannot rely on global developments to bring down inflation in Canada.”

“We don’t expect a severe economic contraction.”